14. Segment Information

The Company has organized its business segments according to its key product lines. The BBU segment designs, develops, manufactures, and markets the Company’s legacy lines of DC-DC converters and configurable products, and also includes the entities comprising Vicor Custom Power and the BBU operations of Vicor Japan Company, Ltd. (“VJCL”). The VI Chip segment includes VI Chip Corporation, which designs, develops, manufactures, and markets many of the Company’s advanced power component products. The VI Chip segment also includes the VI Chip business conducted in Japan through VJCL. The Picor segment, which consists of the operations of the Company’s former subsidiary Picor Corporation (see Note 13, above), designs, develops, manufactures, and markets integrated circuits for use in a variety of power management and power system applications. The Picor segment develops integrated circuits for use in the Company’s BBU and VI Chip modules, to be sold as complements to the Company’s BBU and VI Chip products, or for sale to third parties for separate (i.e., stand-alone) applications.

The Company’s Chief Executive Officer (i.e., the chief operating decision maker) evaluates performance and allocates resources based on segment revenues and segment operating income (loss). The operating income (loss) for each segment includes selling, general, and administrative and research and development expenses directly attributable to the segment. Certain of the Company’s indirect overhead costs, which include corporate selling, general, and administrative expenses, are allocated among the segments based upon an estimate of costs associated with each segment. Assets allocated to each segment are based upon specific identification of such assets, which include accounts receivable, inventories, fixed assets and certain other assets. The Corporate segment consists of those operations and assets shared by all segments. The costs of certain centralized executive and administrative functions are recorded in this segment, as are certain shared assets, most notably cash and cash equivalents, deferred tax assets, long-term investments, the Company’s facilities in Massachusetts, real estate, and other assets. The Company’s accounting policies and method of presentation for segments are consistent with that used throughout the Condensed Consolidated Financial Statements.

The following table provides segment financial data as of and for the three months ended September 30 (in thousands):


	BBU		VI Chip			Picor		Corporate			Eliminations (1)			Total
2018:
Net revenues	$	51,026	$	21,525		$	8,587	$	—		$	(3,103	)	$	78,035
Income (loss) from operations		10,444		1,304			1,579		(284	)		—			13,043
Total assets		268,520		44,262			13,500		83,865			(202,482	)		207,665
Depreciation and amortization		858		913			200		360			—			2,331

2017:
Net revenues	$	38,529	$	14,745		$	6,360	$	—		$	(2,746	)	$	56,888
Income (loss) from operations		2,007		(2,952	)		1,359		(314	)		—			100
Total assets		227,408		33,021			11,934		64,864			(171,151	)		166,076
Depreciation and amortization		971		712			188		373			—			2,244

The following table provides segment financial data as of and for the nine months ended September 30 (in thousands):


	BBU		VI Chip			Picor		Corporate			Eliminations (1)			Total
2018:
Net revenues	$	140,012	$	63,125		$	25,983	$	—		$	(11,620	)	$	217,500
Income (loss) from operations		16,710		3,669			6,037		(1,371	)		—			25,045
Total assets		268,520		44,262			13,500		83,865			(202,482	)		207,665
Depreciation and amortization		2,652		2,560			587		1,071			—			6,870

2017:
Net revenues	$	115,141	$	42,835		$	19,553	$	—		$	(8,470	)	$	169,059
Income (loss) from operations		5,962		(10,761	)		3,825		(842	)		—			(1,816	)
Total assets		227,408		33,021			11,934		64,864			(171,151	)		166,076
Depreciation and amortization		2,944		2,000			558		1,088			—			6,590

(1)

The elimination for net revenues is principally related to inter-segment sales by Picor to BBU and VI Chip and for inter-segment sales by VI Chip to BBU. The elimination for total assets is principally related to inter-segment accounts receivable due to BBU for the funding of VI Chip and Picor operations.